Tariffs: U.S. Duty-Free De Minimis Suspension

Aug 1, 2025

U.S. Duty-Free De Minimis Suspension - 5 Things You Should Know

On July 30, 2025, President Trump issued an Executive Order suspending the duty-free de minimis treatment for imported goods—marking a major shift in U.S. trade policy.

Starting August 29, 2025, all imported goods, regardless of value, will be subject to customs duties and inspections.

Here are 5 things you should know:

What Is Duty-Free De Minimis Treatment?

Until now, goods valued at $800 or less could enter the U.S. without paying tariffs. This rule helped fuel the rise of global e-commerce, making it easier—and cheaper—for businesses and consumers to buy from overseas.

Why the change in U.S. trade policy?

The government cited widespread abuse of the system. The program is being suspended due to concerns that:

Fentanyl and synthetic opioids were being smuggled in small packages.
Counterfeit and unsafe goods were entering the U.S. undetected.
Tariff evasion was rampant through mislabeling and routing tricks.

Who will be affected?

This change is expected to impact a wide range of stakeholders, including:

U.S. retailers
E-commerce platforms
Logistics providers
Consumers

The suspension applies globally, not just to specific countries. It builds on earlier targeted actions against imports from China, Hong Kong, Mexico, and Canada, and is part of a broader strategy intended to:

Secure U.S. supply chains
Protect domestic industries
Combat the opioid crisis

What Should Businesses Expect?

Companies that rely on low-value imports should prepare for anticipated effects, including:

Increased costs due to new tariffs and duties.
Stricter customs enforcement and documentation requirements.
Potential delays in shipping and fulfillment.

Retailers and logistics providers may need to:

Re-assess supply chains
Re-negotiate vendor contracts
Update pricing strategies to remain competitive

Final Thoughts

This Executive Order marks a turning point in U.S. trade enforcement. While it aims to protect consumers and national interests, it also introduces new challenges for global commerce.

Businesses should act quickly to understand the implications and adapt to the evolving regulatory landscape. This may include:

Re-evaluating supply chain and pricing strategies
Consulting with customs and trade specialists
Preparing for increased reporting and compliance costs

For more information, contact us.

Previous articles on global trade:

Ruling by the U.S. Court of International Trade

Global Trade: Free Trade Zones and Bonded Warehouses

Global Trade Pressures

Disclaimer

The contents of this insight are intended for general information only. illumina CPA Group, Inc. is not, by means of this communication, rendering professional advice or services. Before making any decisions or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.